Praise for S.F.’s “alternative”
December 21, 2009 | California, alternatives, industry | Comments (0)Although we all know it’s not really an alternative because the terms are very different than a payday loan. From the LA times:
California, though, has largely stood by, even as the soaring number of payday lenders in the state has surpassed the number of McDonald’s. There were more than 11 million payday loan transactions in California in 2008, according to the California Department of Corporations.
San Francisco and the credit unions are taking an important first step to solve the problem. The new loans will set up cash-strapped consumers to succeed, not fail. You can borrow up to $500, and, crucially, you don’t need to pay it all back two weeks later. You can spread out your payments up to six months. And the interest rate is 18%.
A six-month loan is not a payday loan.
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